BUL 3320 FINAL EXAM QUESTIONS
AND ANSWERS
What would be a provision by which the parties agree in advance to the damages to be
paid in the event of a breach of the contract?
Punitive damage provision
Reliance damage provision
Consequential damage provision
liquidated damage provision - Correct Answers -Liquidated damage provision
When is an agent normally not liable for a contracting agent entering into when the
agent had and acted within their authority
undisclosed
disclosed
partially disclosed principal? - Correct Answers -Disclosed Principle
If a company only hires women as sales representatives because they believe that
customers relate better to women, would this be a violation of the
Federal age discrimination in employment act
Violation of the Equal Pay Act
Not violating any
Federal Age Discrimination in Employment Act
Title 7 of the 1964 Civil Rights Act - Correct Answers -Title 7 of the 1964 Civil Rights Act
What are the levels of performance of a contract?
complete performance
substantial performance
inferior performance of a contract.
All of the above - Correct Answers -all of the above
,T/F: Does tender of performance discharge a party's contractual obligation? - Correct
Answers -True
T/F: Complete or strict performance by a party discharges that party's duties under the
contract. - Correct Answers -True
T/F: Fully performed contract is called an executed contract; Not fully performed is
executory contract. - Correct Answers -True
T/F: If you have a minor breach of the contract, there has been substantial performance.
- Correct Answers -True
What rights do a non-breaching party have? - Correct Answers -Able to sue to recover
damages to recover the cost of repairing a defect. Could NOT sue for specific
performance.
When would inferior performance of a contract occur? - Correct Answers -When there's
a major breach of a contract.
If there is a breach in a contract, would the non-breaching party be discharged from any
further performance under the contract? Can they rescind the contract and seek
restitution of any compensation paid under the contract to the breaching party? -
Correct Answers -Yes, they are discharged; Second part is a benefit of an inferior
breach of a contract where they can rescind.
T/F: Anticipatory breach can be implied in the conduct of a party. When someone is
supposed to perform some duty and they don't show up, while stop answering your
phone calls. - Correct Answers -True
T/F: A non-breaching party has to wait until performance is due until they can sue. -
Correct Answers -False, if someone is supposed to perform in 30 days and they tell you
that they have no intention of performing you do not have to wait 30 days.
What is the non-breaching party's obligation in the event of anticipatory repudiation? -
Correct Answers -The non-breaching party can discharge at that point preventing any
further duties under contract.
What are your damages when there's a breach of a sales contract involving goods
normally governed by? - Correct Answers -Uniform Commercial Code, not common law.
A contractor can recover the profits they would have made on a contract if the owner
breaches the contract before construction begins. (Think anticipatory repudiation.) If
Sam is supposed to start building a house for Lisa in a week and Lisa isn't going to be
following the contract by not allowing them on the property, pay them money etc. Can
Sam sue? - Correct Answers -Sam can then sue at this point to recover damages of the
profits they would have made if the contract was fulfilled.
, If an employer hires someone to work and their employee doesn't show up, what
damages can the employer recover for breaches of an employee contract? - Correct
Answers -Cost to hire a new employee and the increase in salary for the replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. - Correct Answers -False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in most
instances. - Correct Answers -True
T/F: Most courts do not favor nominal damages lawsuits such as $1. - Correct Answers
-True
T/F: If an employer breaches their contract, the employee still owes a duty to find
substitute comparable employment. The employee can't wait a year and then decide to
sue for the whole year of damages. - Correct Answers –True
T/F: Our employers are not obligated to provide accommodations that would impose an
undue
hardship on the employer. - Correct Answers -True
T/F: The Genetic Information Nondiscrimination Act (GINA) makes it illegal for
employers to
discriminate against employees AND against job applicants. - Correct Answers -True
T/F: An affirmative action plan may provide for employment quotas based on a specified
number or percentage of minority applicants or employees and such a plan would not
constitute reverse discrimination. - Correct Answers -False; (It would constitute as
reverse discrimination since you can't have quota system.)
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or impractical to
determine. Law
doesn't favorite liquidated damage provisions. - Correct Answers -True
T/F: If the court finds out that liquidated damage provision amounts to a penalty it is not
enforceable. - Correct Answers -True
Under what circumstances would remedy of precision be available?
Material breach of a contract
Fraud
Duress/undue influence
Mistake - Correct Answers -Mistake
AND ANSWERS
What would be a provision by which the parties agree in advance to the damages to be
paid in the event of a breach of the contract?
Punitive damage provision
Reliance damage provision
Consequential damage provision
liquidated damage provision - Correct Answers -Liquidated damage provision
When is an agent normally not liable for a contracting agent entering into when the
agent had and acted within their authority
undisclosed
disclosed
partially disclosed principal? - Correct Answers -Disclosed Principle
If a company only hires women as sales representatives because they believe that
customers relate better to women, would this be a violation of the
Federal age discrimination in employment act
Violation of the Equal Pay Act
Not violating any
Federal Age Discrimination in Employment Act
Title 7 of the 1964 Civil Rights Act - Correct Answers -Title 7 of the 1964 Civil Rights Act
What are the levels of performance of a contract?
complete performance
substantial performance
inferior performance of a contract.
All of the above - Correct Answers -all of the above
,T/F: Does tender of performance discharge a party's contractual obligation? - Correct
Answers -True
T/F: Complete or strict performance by a party discharges that party's duties under the
contract. - Correct Answers -True
T/F: Fully performed contract is called an executed contract; Not fully performed is
executory contract. - Correct Answers -True
T/F: If you have a minor breach of the contract, there has been substantial performance.
- Correct Answers -True
What rights do a non-breaching party have? - Correct Answers -Able to sue to recover
damages to recover the cost of repairing a defect. Could NOT sue for specific
performance.
When would inferior performance of a contract occur? - Correct Answers -When there's
a major breach of a contract.
If there is a breach in a contract, would the non-breaching party be discharged from any
further performance under the contract? Can they rescind the contract and seek
restitution of any compensation paid under the contract to the breaching party? -
Correct Answers -Yes, they are discharged; Second part is a benefit of an inferior
breach of a contract where they can rescind.
T/F: Anticipatory breach can be implied in the conduct of a party. When someone is
supposed to perform some duty and they don't show up, while stop answering your
phone calls. - Correct Answers -True
T/F: A non-breaching party has to wait until performance is due until they can sue. -
Correct Answers -False, if someone is supposed to perform in 30 days and they tell you
that they have no intention of performing you do not have to wait 30 days.
What is the non-breaching party's obligation in the event of anticipatory repudiation? -
Correct Answers -The non-breaching party can discharge at that point preventing any
further duties under contract.
What are your damages when there's a breach of a sales contract involving goods
normally governed by? - Correct Answers -Uniform Commercial Code, not common law.
A contractor can recover the profits they would have made on a contract if the owner
breaches the contract before construction begins. (Think anticipatory repudiation.) If
Sam is supposed to start building a house for Lisa in a week and Lisa isn't going to be
following the contract by not allowing them on the property, pay them money etc. Can
Sam sue? - Correct Answers -Sam can then sue at this point to recover damages of the
profits they would have made if the contract was fulfilled.
, If an employer hires someone to work and their employee doesn't show up, what
damages can the employer recover for breaches of an employee contract? - Correct
Answers -Cost to hire a new employee and the increase in salary for the replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. - Correct Answers -False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in most
instances. - Correct Answers -True
T/F: Most courts do not favor nominal damages lawsuits such as $1. - Correct Answers
-True
T/F: If an employer breaches their contract, the employee still owes a duty to find
substitute comparable employment. The employee can't wait a year and then decide to
sue for the whole year of damages. - Correct Answers –True
T/F: Our employers are not obligated to provide accommodations that would impose an
undue
hardship on the employer. - Correct Answers -True
T/F: The Genetic Information Nondiscrimination Act (GINA) makes it illegal for
employers to
discriminate against employees AND against job applicants. - Correct Answers -True
T/F: An affirmative action plan may provide for employment quotas based on a specified
number or percentage of minority applicants or employees and such a plan would not
constitute reverse discrimination. - Correct Answers -False; (It would constitute as
reverse discrimination since you can't have quota system.)
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or impractical to
determine. Law
doesn't favorite liquidated damage provisions. - Correct Answers -True
T/F: If the court finds out that liquidated damage provision amounts to a penalty it is not
enforceable. - Correct Answers -True
Under what circumstances would remedy of precision be available?
Material breach of a contract
Fraud
Duress/undue influence
Mistake - Correct Answers -Mistake
